Tuesday, 11 Aug 2020

Michael Klein's Churchill Capital Corp IV files for upsized IPO

(Reuters) – Churchill Capital Corp IV, a special purpose acquisition company (SPAC) run by former Citigroup banker Michael Klein, raised the size of its initial public offering (IPO) to $1.5 billion.

The IPO of Klein’s fourth blank-check company had earlier planned to raise $1 billion.

SPACs typically raise money in an IPO to pursue an acquisition without telling their investors in advance which specific company they will buy. This year, a clutch of private companies have gone public by merging with blank-check companies.

Earlier this month, healthcare services provider MultiPlan inked a $11 billion deal to go public by merging with another entity of Churchill Capital, while electric car maker Fisker agreed to go public through a $2.9 billion deal with a blank-check company backed by buyout firm Apollo Global Management Inc APO.N..

Pershing Square Tontine Holdings Ltd PSTH_u.N, backed by billionaire investor William Ackman, also raised $4 billion last week in the biggest IPO by a special purpose acquisition firm.

Churchill Capital Corp IV will be the second largest blank-check company after Ackman’s Pershing Square Tontine.

Churchill Capital Corp IV will list its units, each made up of one share of class A common stock and one-fifth of one redeemable warrant, on the New York Stock Exchange under the symbol “CCIV.U”.

Citigroup, Goldman Sachs and JPMorgan are bookrunners on the deal.

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